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Business & education services

Capita raises £681mln to help pay down debts

The FTSE 250-outsourcer said its rights issue of 1bn new shares had closed on 24 May with acceptance of 973.5mln shares, or 97.25%

Capita PLC (LON:CPI) said it had an acceptance level of 97.25%, raising £681.4mln for its rights issue designed to pay down debts as well as plugging a pension deficit and boosting investment.

The FTSE 250-outsourcer said the rights issue of 1bn new shares, in which investors could acquire three new shares for each two already held at 70p each, an almost 50% discount to the closing price of 136.4p on May 24, had acceptances for 973.5mln shares.

READ: Capita unveils £701mln rights issue as it reports wider annual loss

In a later announcement, Capita announced that subscribers have been procured for the 27,535,611 new shares not taken up in the rights issue, representing approximately 2.75% of the total, at a price of 137p each.

The company initially planned to raise £700mln from investors to support its plan to simplify and strengthen the business.

The rights issue was announced in late April, when the company reported a pre-tax loss of £514.1mln for 2017 compared to a £89.8mln loss the previous year, mainly due to a £551.6mln goodwill impairment resulting from the termination of contracts, a deterioration in new business opportunities and its transformation costs.

In late afternoon trading, Capita shares were up 3.7% at 141.4p.

-- Adds rump placement details, updates share price --

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